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Tuesday, October 12, 2010

RE DIAMOND NOBEL PRIZE AND THE ECONOMIST CUL DE SAC

A classic economists' Morton's fork:

"...whether today’s unemployment is a cyclical result of recession, or a structural mismatch between workers’ skills and employers’ needs."

The truth, of course, is that it is neither, nor both, nor some third or fourth economist's ostensible cause.

But the economist must play his game with a very limited deck, and the really important questions to ask are why that has been the case?

Some of the actual causes of US unemployment are contained in references to works by others, and my remarks connecting them, contained in various posts on this site. It helps to have watched it unfold, out of the corner of one's eye, for decades.

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